Stock pickers generally look for stocks that will outperform the market as a whole. Buying undervalued companies is a route to excess returns. For example, the CTS Eventim AG & Co. KGaA (ETR:EVD) The stock price has risen 81% over the past 5 years, clearly outperforming the market return by around 5.5% (excluding dividends). However, more recent returns haven’t been that impressive, with the stock only returning 28% last year.

Based on a strong 7-day performance, let’s check what role company fundamentals have played in driving long-term shareholder returns.

Check out our latest analysis for CTS Eventim KGaA

While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying trading performance. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of ​​how investors’ attitudes toward a company change over time.

In the five years of share price growth, CTS Eventim KGaA has gone from loss to profitability. This is widely believed to be a real bright spot, so we would expect to see an increase in the stock price.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

We know that CTS Eventim KGaA recently improved its results, but will it increase its income? You could check this free report showing analyst revenue forecast.

What about the Total Shareholder Return (TSR)?

We would be remiss not to mention the difference between the CTS Eventim KGaA total shareholder return (TSR) and its share price performance. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. Its dividend distribution history means that CTS Eventim KGaA’s 92% TSR over the last 5 years is better than the share price return.

A different perspective

It is good to see that CTS Eventim KGaA has rewarded its shareholders with a total shareholder return of 28% over the last twelve months. That’s better than the 14% annualized return over half a decade, which implies the company has been doing better recently. Someone with an optimistic outlook might see the recent improvement in TSR as indicating that the company itself is improving over time. It is always interesting to follow the evolution of the share price over the long term. But to better understand CTS Eventim KGaA, we need to consider many other factors. Nevertheless, be aware that CTS Eventim KGaA displays 1 warning sign in our investment analysis you should know…

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Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on DE exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.